NEWS UPDATE: Cory Bernardi's ship finally sails

WE'VE heard rumours, innuendo and thinly veiled threats in the form of tantrums for months, but Liberal Senator Cory Bernardi has finally officially defected to set up his own "Australian Conservatives" party.

But his resignation has drawn withering attacks from former colleagues, with Prime Minister Malcolm Turnbull suggesting the senator should do the honourable thing and resign from the Senate, senior South Australian colleague Simon Birmingham accusing him of a "dog act" and Liberal Senate leader George Brandis declaring he had broken faith with Liberal voters who had elected him.

But the former Liberal senator, who has delivered another hit to Mr Turnbull's ailing government and who was verbally carpet-bombed by furious ex-colleagues on Tuesday, has no intention of quitting.

"The body politic is failing the people of Australia. It is clear that we need to find a better way. The level of public disenchantment with the major parties, the lack of confidence in our political process and the concern about the direction of our nation is very, very strong," he told the Senate, announcing his resignation.

Senator Bernardi warned Mr Turnbull that moves were afoot to displace him because of his own poor performance https://t.co/D95NVBpYuR

Last Thursday, The Australian reported that Bernardi had been meeting with billionare mining magnate Gina Rinehart and that they had also held meetings with key members of Donald Trump’s campaign team in Washington last month, sparking rumours of a split.

The Guardian's Katherine Murphy reported that Bernardi intended to run Senate candidates in the next election but had "no idea" whether Gina Rinehart would bankroll this move.

Murphy stressed the importance of Bernardi's vote for the Turnbull Government:

'Cory Bernardi can wield considerable influence outside the Liberal party on an enlarged Senate crossbench. Bernardi's resignation brings the Coalition down to 29 seats. One Nation (three) and the Nick Xenophon Team (three) are key to helping the government achieve a majority of 38 ... Bernardi's vote counts because the government can only afford to lose two or three crossbench votes.'

Brandis says we will be treating Bernardi as a professional colleague. In other words we need his vote!!! pic.twitter.com/bzn6JvYZxU

'Someone “to the right of Genghis Khan” was unlikely to vote with Labor and the Greens.'

As IA has already reported, things continue to spiral out of contol for Malcolm Turnbull with questions again surfacing about his leadership – a stretegic parting gesture from Bernardi – and challengers, including the erstwhile PM Tony Abbott, waiting in the wings. This comes on top of a string of poorly received policy decisions and backflips, such as "clean coal", together with disastrous popularity polls indicating the Turnbull Government now trails the Shorten Labor Opposition with 46% to the ALP's 54% (two party preferred).

All in all, not a great first day back at the office for Malcolm Turnbull.